SIP & Lumpsum Calculator
Estimate the growth of your investments and visualize the power of compounding over time.
Wealth Projection Over Time
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Open a completely free paperless Demat and Mutual Fund account with top Indian discount brokers. Begin your SIP with as little as ₹500/month.
What is a Systematic Investment Plan (SIP)?
A Systematic Investment Plan (SIP) is an investment vehicle offered by mutual funds that allows you to invest a fixed amount of money regularly (e.g. monthly or quarterly) into a chosen mutual fund scheme. Instead of trying to time the stock market, SIP promotes disciplined investing.
Why Compounding Matters?
Compounding represents earning returns on your returns. When your investment generates returns, those earnings are added to your principal amount. In the subsequent period, you earn returns on that larger total. Over 10, 20, or 30 years, this snowball effect transforms small monthly savings into massive corpuses.
Key Benefits of Investing via SIP
Rupee Cost Averaging
When the market falls, your SIP buys more mutual fund units. When it rises, it buys fewer. Over time, your average purchase cost averages out, shielding you from market volatility.
Disciplined Savings
Automated monthly debits (via bank mandates) ensure that you invest first and spend what is left, creating a healthy financial habit.
Low Minimum Start
You don't need large sums to build wealth. You can start investing with as little as ₹500 or ₹1,000 per month.
Frequently Asked Questions
What is a Systematic Investment Plan (SIP)?
A Systematic Investment Plan (SIP) is a smart financial strategy offered by mutual funds that allows you to invest small, fixed amounts of money at regular intervals (such as weekly or monthly) instead of committing a large one-time sum.
How does SIP compound wealth over time?
SIPs leverage compounding by generating returns on your accumulated returns. Over time, reinvested growth buys more mutual fund units. Combined with rupee cost averaging (buying more units when prices fall, fewer when they rise), compounding can significantly expand your wealth buffer over a 10, 20, or 30-year timeframe.
Why SIP Is the Most Powerful Way to Build Wealth in India
Picture this: Rohan, a 24-year-old software engineer in Pune, starts a ₹5,000 monthly SIP after his first salary credit. He feels like it's too little to matter. But 30 years later, at a modest 12% return, that SIP has quietly grown into ₹1.76 crore — without him ever thinking about timing the market or picking stocks.
That's the magic of a Systematic Investment Plan. It works by harnessing two forces simultaneously: compounding (your returns earning returns) and rupee cost averaging (automatically buying more units when prices fall and fewer when they rise). Together, they smooth out market volatility and work in your favour over time.
Most Indians know SIPs exist. Far fewer understand how devastating the delay of even a single year can be. Starting at 25 instead of 24 with the same ₹5,000 monthly investment can mean giving up ₹15–20 lakhs over a 30-year horizon — money you never had to work for. It simply stopped compounding.
One practical tip: set up your SIP on the day you receive your salary. This removes the mental friction of deciding each month. Automate it, forget it, and let the market do the heavy lifting for the next decade.
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